MARG ACADEMY

A Ledger account may be defined as a summary statement of all the transactions relating to a person, asset, expense or income, which have taken place during a given period of time and show their net effect

PROCESS TO CREATE A NEW LEDGER:

1.      Enter username and password to login into your Marg software.

2.      Click on transactions à Masters àLedger masterà New ledger.

3.      Mention all the necessary details regarding the Ledger. This includes:

I.            Ledger Name.

II.          Station

III.        Group-which states the prime group like sundry debtors, sundry creditors, etc

IV. Balancing method-whether it is bill by bill, fifo (First in First out ) basis or on account.

V.            Opening balance. Also,   mention whether your organisation has a credit or debit balance.

VI.            Registration No. ( D L No.)

VII.          VAT- what should be the tax structure. Whether the transactions with the party subject to local sales tax or central sales tax, etc

VIII.       S.T. Heading ( CST NO.)

IX.           I.T. Pan No- Pan no which is given by the income tax department.

X.             Mention M.R. (means transactions taking place at the company counter or by a dealer in person)

XI.           Mention Area (area where transactions will take place).

XII.         Mention Route (primarily city in which transaction will take place)

XIII.        Accept the data entered. And save the data.

XIV.         Ledger master is created.

SALES -To predefine a Sale Type based on its Tax System

PROCESS TO CREATE A NEW SALES LEDGER:

1.      Enter username and password to login into your Marg software.

2.      Click on transactions à Masters àLedger masteràNew Sales.

3.      Enter the following details:

I.            Shortcut Name-this feature is to give a short cut name an organisation wish to create for a new sales entry.

II.           Mention the tax rate that has to be charged.

III.         Mention the sales group & create the sales type with government       rules of applicability of VAT  schedule .

IV.          Tax under- like what tax has to be charged on the Item. Like VAT, CST, Excise, etc

V.            Mention the group. Like 7% VAT group means tax group would be VAT 7%.

VI.           Mention the S.T>. form that is required to be issued when this sale transaction occurs.

4.               Press Y/N to accept/reject.

5.             Once the Sales Ledger is created by one name , No other Sales Ledger can be created in  the same name.

We cannot Alter /Modify the Sales Type Ledger i.e. If  Vat rate is 7% & now it changed to 5% in the Interim Budget , NO Modifiactions can be made in the same ledger . We will have to create a new ledger

PURCHASE – To predefine a Purchase Type based on its Tax System

THE STEPS TO CREATE THE PURCHASE LEDGER REMAINS THE SAME AS DISCUSSED ABOVE

EXPENSE BUDGET: The plan set the firm for the expenditure and earning of funds. This plan can be altered according to the policies & procedures of the firm . And is divided among accounts and Budget Control Groups .

It deals with the preparation of budget for the coming financial  year as well as comparison with the current  budget of the actual performances . The foregoing discussion brings about clearly that systems perspective enables one to see that accounting is one sub – system interacting with the whole organisation.